Giorgi Loria
Doctor of Law, Professor, Caucasus University
Abstract
The paper concerns the discriminatory regulation of Article 81 of the Tax Code of Georgia, according to which income from the organization of slot machine parlors and online/electronic gambling systems is taxed differently depending on whether the income received by the person organizing the gambling business is received with funds paid by Georgian citizens or by citizens of foreign countries. In the case of income received as a result of the participation of Georgian citizens, the tax rate is 20%, and in the case of the participation of foreigners – 5%. The mentioned regulation creates serious legal problems in terms of the principles of equality and justice and establishes discriminatory approaches. The study covers the tax legislation of Georgia against the background of the analysis of the principles of international law and tax legal regulations of foreign states. The paper discusses the general theory of discrimination, its types and the requirements of the Convention for the Protection of Human Rights and Fundamental Freedoms regarding discriminatory regulations.
The principles of formal and substantive justice analyzed in the scientific literature and the necessity of their application are reviewed. Using the comparative method, the tax legislation of Georgia is compared with the tax legislation of Germany, the United States of America and Russia, where attention is focused on the principles of equality and justice established in tax law.
The paper critically examines the implementation of discriminatory approaches based on citizenship, which contradicts the requirements of both the Constitution and international law. The introduction of such changes in tax legislation that contradict the norm at a higher level of the hierarchy is criticized.
It is argued that the different taxation rules established by the amendments to the Tax Code in 2024 are discriminatory on the basis of citizenship and that such discriminatory regulation does not serve legitimate public interests, nor will it serve as a mechanism for attracting foreign investments, nor will it increase budget revenues to a level that would justify discrimination.
In conclusion, recommendations are presented regarding amendments to the Tax Code of Georgia, which will fully align the Georgian tax system with justice, equality, and ensure a proper balance between public and private interests.
Keywords: Discrimination, Tax Regulation, Equality, Justice, Gambling Business.
JEL: K34; K38; H25
DOI: 10.52244/c2025.42
The article is in Georgian.
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